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Fri, Jul 25, 2003 - Page 12 News List

Sony struggles to overcome global slump


Struggling technology giant Sony said Thursday its net profit in the June quarter plunged 98 percent from last year to Japanese Yen 1.1 billion (US$9.3 million) as global demand for electronics faltered.

At the same time, the Japanese firm pledged to push on with a three-year corporate overhaul to turn around its fortunes, adding that earnings this full year hinged on its performance in the crucial Christmas period.

Sony Corp's pre-tax profit tumbled 69.3 percent to Japanese Yen 35.8 billion in the three months to June, while sales fell 6.9 percent to Japanese Yen 1.6 trillion.

Chief financial officer Takao Yuhara said the results were not as bad as had been expected but admitted the company remained wary about the future.

"What is important is our Christmas sales, unless we go through that period we cannot relax," he told a news conference.

Revenue at Sony's key electronics division in April to June slid 9.8 percent to Japanese Yen 1.1 trillion as orders for televisions and audio goods fell after a surge last year ahead of the football World Cup co-hosted by Japan and South Korea.

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